Business & Finance Bankruptcy

Should I Settle for a Debt Settlement?

    Accept Settlement Offer

    • There are a few benefits to settling a debt, rather than leaving it unpaid. According a The Credit Info Center, settling a debt can help a consumer save money by lowering the debt amount or clearing up the debt, and can help the consumer avoid a law suit from being filed by the creditor or collection agency.

    Pay Debt In Full

    • A settled debt sometimes looks worse to a future creditor than one paid in full. ChristiaNet suggests not settling a debt and paying off the debt amount in full, by either tightening finances elsewhere or finding additional income.

    Bottom Line

    • It is best to get the debt paid off whether settled or paid in full. The Credit Info Center suggests engaging in a negotiation with a collector because some will offer a settlement and possibly allow your credit report to list the debt as paid in full.

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